Analysts who have followed recent developments in the stock market due to worries about the impact of the Coronavirus have not been pleased. They have been dismayed by the dramatic sell off that sent the DOW JONES Industrial Average reeling. It fell by more than 3500 points during the last week of February.

This sell off in stocks focused investors’ attention on assets that were considered safer, such as government bonds.

The anxiety reflected in these investor moves was also underscored by Federal Reserve Chairman Jerome Powell’s announcement that the Fed was prepared to lower interest rates to modify the effects of the pandemic. However, given how low interest rates are already, it is difficult for the Fed to develop a plan to cut interest rates by the amount needed to reduce the economic effects of the disease.

The rapid spread of the virus, reflected in the increase in the number of cases now in many parts of the world, has drawn the attention of the Fed and other policy-making agencies. The Fed has a meeting scheduled for mid-March, and it then will have a better idea of how devastating the effects of the Coronavirus have been on the United States economy.

They will have noticed that the virus has already had a major impact on diverse economies throughout the world, such as South Korea, Germany and Italy.

In a recent article in the Wall Street Journal, Margherita Stancati discusses some of the problems Italian citizens are having as a result of the outbreak of the disease in northern Italy.

“Italians abroad are being treated as a risk, and several countries have already banned travelers from Italy. Others –including China – have imposed a two-week quarantine on people who have recently been to the peninsula.”

It is easy to see that the disease will have a major economic impact on people in many countries. For this reason, though any action by the Fed always poses some risk of unsettling markets, given the present situation, it may not have any choice.

Author and retired educator Dave Kaplan writes from his home in Santa Barbara, Calif.

(16) comments

David Collins

While any new contagion brings pause to the market , it is the constant media hype spewing fear of yet one more end of days scenario . Political weaponizing this virus just adds to the toxic mix . Never let a crisis go to waste has been used before and will be again as fear and doubt to sell quite well to the masses who are desperately looking for someone or something to blame . On average 1.2 million souls are killed yearly world wide in traffic wrecks . When this virus exceeds that number it will be time to start quaking. Besides , it is the old and in-firmed that succumb to the pneumonia that results . Just like any other flue . Time to check out anyway . Natures way .

JusticeForAll

"Find out just what any people will quietly submit to and you have found out the exact measure of injustice and wrong which will be imposed upon them, and these will continue till they are resisted with either words or blows, or with both. The limits of tyrants are prescribed by the endurance of those whom they oppress." Wesley Gray

dc

The best lesson learned from this is the CDC & other massive federal bureaucracies need attention & improvements.

JusticeForAll

Attention is too late. Improving is not going to happen. This virus makes no sense, except as a distraction for economic collapse, which is inevitable. The powers that be will declare it a pandemic this week. It is going to be a difficult time ahead for the bottom 99%.

Always A Teacher

You all need to go back and take bio 101 again, along with our idiot and out-of-touch president, and learn about viruses and their nuances. Count your blessings that your alveoli are working. With coronavirus, they might not. That's why it can be such an agonizing death. The car-wreck analogy is so lame..not even close to apples and oranges, more like green olives and watermelons.

JusticeForAll

Biology 101- EVERYTHING that lives...dies. The point is on this particular virus and/or disease, is that it kills far less humans than other diseases, viruses, accidents, threats, events, etc. So far, the majority of those who die from this are the elderly, with underlying conditions. The hype and tie in with the stock market is dubitable. Get ready for restrictions of your personal mobility. And, if you are a teacher, the statement you made, "along with our idiot and out-of-touch president" exemplifies one of the significant problems with our educational system. Have a glorious day!

David Collins

One more thing . What does OUR president have to do with any of this . He was the first to restrict entries and caught a bunch of criticism from your lefties . A remedial course may indeed be necessary but not for him . It is a FLU , not the Black Plague of yesteryears. Normally 10K + succumb yearly here to the regular variety and no one blinks an eye . Anyone that is aged with immunity issues needs to take precautions . That means people like me . I get it . Most folks get over it with slight discomfort and some do not even know they have it or ever had it . Just like any other flu . Have ya seen folks dying in the streets ? Just a bunch of nervous nellies being cheered on by the rabid media looking to do as much damage to our state as possible . Now our esteemed do nothing Governor has decided to add to the mix . Yeah , politics at it’s worst . Perhaps if you ran for Pres. things would be better . Wouldn’t it ?

Always A Teacher

There is no light at the end of the tunnel. You all are blind to the effects of what is about to happen. It has only just begun. There is no treatment, just your own body's ability to fight it off. It can not be compared to the flu, common cold, or the number of football injuries per year. Just wait...I am done belaboring the point. You will see the light in another month.

David Collins

How are you going to see the light if there is no light in that tunnel ? Way too much drama here . Way too much but drama does sell so that makes it ok . Doesn’t it ?

JusticeForAll

Well, "it's only just begun" was a great song by the Carpenters, but it does not give any credibility to your assertion of the impending doom. You know what travels, mutates, and causes more harm...panic. It's been declared a panademic..."WHO" knew? Posted that on March 8th. ...

(Edited by staff.)

dc

In the Charlotte area for a funeral of lifelong friend who died of cancer a few days ago. After returning from a walk outside the hotel where we were staying 2 guys were finishing their cigarettes at the lobby entrance. They both had foreign accents but spoke fluent English & were obviously workers as their clothes were soiled. Since they were so close to the entrance I exchanged greetings & since one was wearing coveralls with a major German industrial corporation I asked him a question about their products. He willingly responded. Then asked both of them where they were from. One said Germany & added East Germany & something about Poland. He then excused himself to get some food as it was well past the evening meal time. The other younger man said he was from Italy & added Northern Italy. We talked about the U.S. & Italian economies. I asked if the virus in the northern sector might possibly be related to Chinese workers in that area. He didn't know but asked about what I thought about Trump & that he was hearing from back home that he was concerned about the economy. I said of course he is but he's also concerned about our nation's health. Both these men are from open border countries working internationally. The Italian man younger of the two & seemingly more engaging is a citizen of a socialized medicine/open border country & seemed very concerned about the virus. So, are open border/socialized medicine countries in a better position to protect itself in a pandemic than the U.S.?

dc

"Do we really want Democrats in charge of health care with full government control?" By Jack Hellner. One of the points is socialized medicine is designed to rid itself of the elderly. Is Biden's main health adviser that old guy that said no one needs to live past 75? Then why are Ds so concerned about this virus? Or is it more about the ONE who they hate most of all though he's not as elderly as the one they seem to love most of all among their elderly?

dc

"The Wuhan Virus Escaped from a Chinese Lab" by Daniel John Sobieski.

JusticeForAll

Download Google translates and go to some Chinese and Iranian news sites. Interesting.

dc

President Trump has been right about China all along & like Sen. Cotton says our relationship with China has to change & fast. What they haven't been able to steal from us some of our so-called leaders have given them to line their own pockets & we know who they are. Names Clinton & Biden ring any bells? Our national security was at stake all along & continues to be more now than ever. Those businesses producing anything but trinkets need to pack up & move yesterday.

dc

"Trump's Ultrasonic Whistle Exposes Vermin Infestation" by Clarice Feldman.

Welcome to the discussion.

As a privately owned web site, we reserve the right to edit or remove comments that contain spam, advertising, vulgarity, threats of violence, racism, anti-Semitism, or personal/abusive/condescending attacks on other users or goading them. The same applies to trolling, the use of multiple aliases, or just generally being a jerk. Enforcement of this policy is at the sole discretion of the site administrators and repeat offenders may be blocked or permanently banned without warning.